AstraZeneca rose to a six-month high after a diabetes pill
from the company and Bristol-Myers Squibb Co. won the backing of
a U.S. advisory panel. Peugeot slumped the most in five years as
General Motors Co. said it is selling its entire stake in the
French carmaker. RSA Insurance Group Plc plunged 7.2 percent
after its Chief Executive Officer Simon Lee resigned as an
investigation into accounting practices at its Irish unit forced
the company to increase reserves.

The Stoxx 600 fell 0.2 percent to 309.75 at the close of
trading. The regional benchmark has retreated 2.1 percent this
week as U.S. economic data fueled speculation the Fed could slow
the pace of bond buying sooner than forecast.

“The debate about the beginning of the Fed tapering at its
Dec. 17-18 meeting hangs over markets like the sword of
Damocles,” said Martin Schlatter, a fund manager at Swiss Rock
Asset Management AG in Zurich, which oversees about $1 billion.
“We don’t expect any actions yet. Therefore we believe the
current weakness should be a buying opportunity.”

About 34 percent of economists surveyed on Dec. 6 by
Bloomberg predicted that the U.S. central bank may reduce its
$85 billion of monthly bond purchases at its Dec. 17-18 meeting,
up from 17 percent in a Nov. 8 poll.

National Indexes

AstraZeneca Plc gained 1.8 percent to 3,518.5 pence. The
benefits of the new diabetes drug outweigh a potential higher
risk of bladder cancer and liver toxicity, an advisory panel to
the Food and Drug Administration said. The FDA is expected to
decide by Jan. 11 whether to approve the treatment, known as
dapagliflozin.

ARM Holdings Plc climbed 3 percent to 1,001 pence. The U.K.
chip designer announced the acquisition of Geomerics, a provider
of lighting technology for the gaming and entertainment
industry, without giving financial details.

Separately, Google Inc. may design its own server
processors using technology from ARM, whose products power Apple
Inc.’s iPhones, according to a person familiar with the matter.

Home Retail Group Plc added 2.2 percent to 189.7 pence.
Deutsche Bank AG raised the owner of the Argos chain to buy from
hold, citing a “more buoyant consumer atmosphere.”

Hays Rises

Hays Plc climbed 2.1 percent to 118.8 pence. Morgan Stanley
initiated coverage of the recruitment company with an overweight
rating, the equivalent of buy, saying its exposure to markets
where demand for temporary workers is strong will boost profit
next year.

Peugeot declined 12 percent to 9.34 euros. General Motors,
the U.S. automaker that acquired a stake in Peugeot last year,
is selling its entire 7 percent holding -- 24.8 million shares -
- through a private placement to institutional investors. GM is
offering the shares to money managers for 10 euros to 10.25
euros apiece, according to a person with knowledge of the
transaction who wasn’t authorized to speak publicly.

Lower Savings

GM’s 320 million-euro ($440 million) investment in the
Paris-based automaker was part of an alliance aimed at
delivering savings through joint purchasing and product
development. Co-operation has been scaled back and Peugeot said
yesterday that savings will be 40 percent less than originally
announced.

RSA Insurance plunged 7.2 percent to 92.5 pence, its lowest
price in more than eight years. The London-based insurer added
an additional 130 million pounds ($212 million) to its Irish
reserves and forecast a further reduction in 2013 earnings.
Chairman Martin Scicluna will lead the company until a new CEO
is appointed.

Delta Lloyd NV dropped 3 percent to 17.14 euros. Goldman
Sachs Group Inc. cut its rating on the biggest Dutch provider of
group life insurance to neutral from buy, citing the stock’s
rally. The shares have gained 39 percent this year, compared
with the Stoxx Insurance 600 Index’s 20 percent increase.